1998 Net Operating Surplus
Authorization for Transfer to the Stabilization Reserve Fund -
Hummingbird Centre for the Performing Arts
The Economic Development Committee recommends the adoption of the following report (October 8, 1998) from
the Board of Directors of the Hummingbird Centre for the Performing Arts:
Purpose:
To provide for a transfer of the net operating surplus generated at the Hummingbird Centre for the Performing Arts for
fiscal 1998 into the Stabilization Reserve Fund - Hummingbird Centre for the Performing Arts.
Funding Sources, Financial Implications and Impact Statements:
The 1998 Metro net budget funding allocation for the Board of Directors of the Hummingbird Centre for the Arts is zero.
The 1999 operating budget plan, currently before Council, also presumes a zero net funding allocation from Metro.
Recommendations:
It is recommended that:
(1)Council authorize the transfer of a 1998 net operating surplus of the Hummingbird Centre, as reviewed and approved
by the City Auditor, from the Board of Directors of the Hummingbird Centre to the Stabilization Reserve Fund -
Hummingbird Centre for the Performing Arts; and
(2)the appropriate officials of The Board of Directors of the Hummingbird Centre and of the City Corporation be
authorized and directed to take the necessary steps to give effect to the foregoing.
Council Reference/Background/History:
By its adoption of Clause No. 2 of Report No. 31 of the Financial Priorities Committee on December 18, 1996, Council
approved the establishment of the Stabilization Reserve Fund - Hummingbird Centre for the Performing Arts. By-law No.
172-96 was enacted for this purpose to allow for the funds to be used to offset future operating deficits of the Board of
Directors of the Hummingbird Centre.
When Council approved the Stabilization Reserve Fund - Hummingbird Centre for the Performing Arts it did not provide
for the automatic transfer of operating surpluses in any future year.
The Board of Directors of the Hummingbird Centre approved a motion to Council to request the transfer of an operating
surplus generated by the Centre for fiscal 1998 into the Stabilization Reserve Fund - Hummingbird Centre for the
Performing Arts.
Comments and/or Discussion and/or Justification:
The proposed transfer of net operating surplus for fiscal 1998 is consistent with the business plan approved by Council's
adoption of Clause No. 1 of Report No. 6 of the Environment and Public Space Committee at its meeting held on April
24, 1996
The Board of Directors of the Hummingbird Centre for the Performing Arts have continued to pursue and implement the
objectives of the Business Plan approved by Council for the continued operation of the Centre without need for funding
from City Council, for either operating or capital programmes.
In the absence of enabling legislation from the Province of Ontario to complete the separate not-for-profit incorporation of
the Centre (which is being actively pursued), the Stabilization Reserve Fund was established as an interim mechanism to
allow the Centre the ability to hold its earned surplus.
Contact Name and Telephone Number:
Roy W. Reeves
Senior Manager, Finance & Personnel
(416) 393-7455
